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HomeMy WebLinkAbout05 HOUSING AUTHORITY REPORT' Agenda Item ~~.~ LL AGENDA REPORT Reviewed: Finance Director MEETING DATE: SEPTEMBER 20, 2011 5 TO: WILLIAM A. HUSTON, INTERIM CITY MANAGER & INTERIM HOUSING AUTHORITY EXECUTIVE DIRECTOR FROM: CHRISTINE SHINGLETON, ASSISTANT CITY MANAGER & HOUSING AUTHORITY ASSISTANT EXECUTIVE DIRECTOR SUBJECT: HOUSING AUTHORITY 2010-2011 ANNUAL REPORT SUMMARY The California Housing Authorities Law of the California Health and Safety Code requires that the Housing Authority submit to the legislative body and the California State Department of Housing and Community Development an annual report for the preceding fiscal year. RECOMMENDATION It is recommended the Tustin Housing Authority Commissioners: • Receive and file its Annual Report for Fiscal Year ("FY") 2010-2011 and transmit such report to the Tustin City Council. It is recommended that the City Council take the following actions: • Receive and file the Housing Authority's Annual Report for FY 2010-2011. • Direct that a copy of the Housing Authority's Annual Report for FY 2010-2011 be filed with the City Clerk and ex-officio Clerk of the City Council of the City of Tustin and the California State Department of Housing and Community Development. FISCAL IMPACT The only fiscal impact of this action has been the staff time necessary for required State reporting. Pursuant to Section 34328.1, the Department of Housing and Community Development could request the Housing Authority reimburse the department for the cost of processing the report. The Housing Authority is requesting relief from this requirement. City Council Report September 20, 2011 2010-2011 Housing Authority Annual Report Page 2 BACKGROUND/DISCUSSION On March 15, 2011, the City Council approved Resolution No. 11-20 establishing a Housing Authority in accordance with the California Housing Authorities Law (CHAL). On April 19, 2011, the Tustin Housing Authority Commissioners approved Resolution No. HA 11-01 adopting By-Laws for the Tustin Housing Authority. In accordance with Section 34328 of CHAL, the newly established Tustin Housing Authority shall annually file on the first day of October with the City Clerk and with the Department of Housing and Community Development (HCD) a complete report of its activities for the preceding year. This report shall contain information adequate for the city or HCD to determine that the requirements of Section 34312.3 have been met for any activity undertaken pursuant to that section. The report shall also make either directly or through any national, regional, or state housing association or organization of which it may be a member, recommendations with reference to additional legislation or other action which it deems necessary to carry out the purposes of CHAL. Pursuant to Section 34328.1 of CHAL, the annual report must contain the following: Recommendations for needed legislation to carry on properly a program of housing and community development in this state. 2. Data on terminations of tenancies of victims of domestic violence in housing authority units, and terminations of Section 8 vouchers of victims of domestic violence. a. The data shall be included in all cases where a notice of termination was given, regardless of whether the termination was based in whole or in part on activity related to the domestic violence, and whether the notice resulted in the victim vacating the premises or actual termination of the voucher. b. For each termination, the report shall briefly specify steps taken, if any, by the authority to address the situation or assist the victim prior to the termination, and, if known, the subsequent housing obtained by the victim. If no steps were taken, the authority may include an explanation of why none were deemed necessary. c. The report shall include data on terminations of all victims of domestic violence, as reported or known to the authority, its employees, or agents, whether or not an arrest was made or any report was filed. City Council Report September 20, 2011 2010-2011 Housing Authority Annual Report Page 3 d. The report may include any other information regarding domestic violence victim terminations deemed relevant by the authority. e. For purposes of this section, "domestic violence" has the meaning set forth in Section 6211 of the Family Code. 3. Pursuant to Section 34328, the Tustin Housing Authority's annual report shall contain information adequate for the city and HCD to determine that the requirements of Section 34312.3 have been met for any activity undertaken pursuant to that section. In accordance with Section 34312.3, the authority may do any of the following and report accordingly: a. Issue revenue bonds for the purpose of financing the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with and determined necessary to the multifamily rental housing. b. Make or undertake commitments to make construction loans and mortgage loans to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing. c. Purchase or undertake, directly or indirectly through lending institutions, commitments to purchase, construction loans, and mortgage loans originated in accordance with a financing agreement with the authority to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing or make loans to lending institutions under terms and conditions which, in addition to other provisions determined by the authority, shall require the lending institutions to use the net proceeds of the loans for the making, directly or indirectly, of construction loans or mortgage loans to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing. 4. Any activities where the Authority developed, rehabilitated, or financed housing projects or participated in the development, rehabilitation, or financing of housing projects; or purchased, sold, leased, owned, operated, or managed housing projects so assisted, subject to all of the requirements of Section 34312.3 shall be reported. 5. A reporting breakdown of occupancy by income levels and rents for housing projects assisted by the Authority that demonstrate compliance with the following: City Council Report September 20, 2011 2010-2011 Housing Authority Annual Report Page 4 a. Not less than 20 percent of all units in housing projects are available for occupancy on a priority basis to persons of low income and base rents are adjusted for household size, as determined pursuant to Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sect 1437f) or its successor. b. Not less than one-half of the units are occupied by, or made available to, very low income households, as defined by Section 50105 and rental payments for those units do not exceed the amount derived by multiplying 30 percent times 50 percent of the median adjusted gross income for Orange County, adjusted for family size. 6. Any indebtedness incurred pursuant to a mortgage loan finance under the terms of Section 34312.3 that is subject to acceleration and the balance owing declared immediately due and payable upon any sale of an owner-occupied residence to a purchaser who does not meet the required qualifications for borrowers as established by the Authority. 7. Certification the Authority is requiring the owners of housing projects assisted pursuant to Section 34312.3 to accept as tenants, on the same basis as all other prospective tenants, in the units reserved for very low income households, any very low income households, any very low income households who are recipients of federal certificates for rent subsidies pursuant to the existing program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its successor. The Authority shall not permit a selection criteria to be applied to Section 8 certificate holders that is any more burdensome than the criteria applied to all other prospective tenants. 8. Certification that no resident in housing units assisted pursuant to Section 34312.3 shall be denied continued occupancy or ownership because, after admission, the resident's family income increases to exceed the eligibility level. However, the Authority shall ensure that percentage requirements of this section shall continue to be met by providing the next available unit or units to persons of low income or by taking other actions to satisfy the percentage requirements of this section. 9. In determining whether the percentage requirements of subdivision (c) have been achieved, the following terms and conditions shall be applied: a. The requirement that 20 percent or 15 percent, as the case may be, of the housing units assisted by an Authority pursuant to this section shall be available on a priority basis, or occupied by, households whose adjusted gross income does not exceed the applicable limits prescribed by subdivision City Council Report September 20, 2011 2010-2011 Housing Authority Annual Report Page 5 (c) shall apply to the aggregate number of units assisted by an Authority pursuant to this section. b. This section applies only to housing units first assisted after January 1, 1983, and the percentage requirements of subdivision (c) shall be complied with by January 1, 1986, and on January 1 of each even-numbered year thereafter. c. The percentage requirements of subdivision (c) shall be achieved within each of the following categories: (1) rental housing developments; (2) homeownership developments; and (3) rehabilitation financing. Housing units provided by rehabilitation financing shall not be counted within either of the first two categories. 10. Units required to be reserved for occupancy by subdivision (c) and financed with the proceeds of bonds issued on or after January 1, 1986, shall remain occupied by, or made available to, those persons until the bonds are retired. 11. Multifamily rental housing financed pursuant to Section 34312.3 shall not be subject to the requirements of subparagraph (B) of paragraph (1) and paragraph (2) of subdivision (c), and the requirements of subdivision (d), if all of the following requirements are fulfilled: a. The Housing Authority offers each tenant a homeownership opportunity when the bonds are retired. b. A special trust fund or account which is funded with bond issuance proceeds or developer contributions, or both, is established no later than the time that the multifamily rental housing is first occupied. The initial funding of the account shall be no less than 5 percent of the face value of the bonds issued for the multifamily rental housing project. Upon repayment of the bonds, these funds, and all interest accruing thereon, less any amounts necessary to pay outstanding claims, shall be used to assist housing units for persons of very low income. c. The requirements of subparagraph (A) of paragraph (1) and subparagraph (A) of paragraph (2) of subdivision (c) shall remain in effect for the periods required by Section 103(b)(12)(B) of Title 26 of the United States Code. 12. It is the intent of the Legislature, and the Legislature declares, that housing authorities are the local entities with primary responsibility for providing housing for low-income and very low income households within their jurisdictions. However, recognizing that housing projects only for low-income households cannot be City Council Report September 20, 2011 2010-2011 Housing Authority Annual Report Page 6 adequately assisted or developed with currently available funds, and that excess funds from housing projects assisted pursuant to this section can be utilized to further assist in the provision of housing for lower income households, it is the intent of the Legislature that the authorization of this section is to be used to enhance and supplement the traditional housing authority role of providing housing only for low-income households. 13. The Authority shall provide the Department of Housing and Community Development funds as requested by the department to reimburse the department for the cost of processing the report required by this section. ANALYSIS The Housing Authority was established at the end of the third quarter of FY 2010-2011 and by-laws were adopted in the fourth quarter of FY 2010-2011. As a result, there is no activity to report for FY 2010-2011. The attached annual report responds to the requirements of Sections 34312.3 and 34328.1 and reports the lack of activity accordingly. Staff will be available to respond to any questions at the Housing Authority and City Council meeting of September 20, 2011. As a result of the recommended actions, the 2010-2011 Housing Authority Annual Report will be submitted to the Department of Housing and Community Development prior to October 1, 2011. ~~v Christine A. Shingleton Assistant City Manager Attachments: Tustin Housing Authority Annual Report, FY 2010-2011 TUSTIN TUSTIN HOUSING AUTHORITY ANNUAL REPORT FY 2010 - 2011 BUfLDING OUR FUTURE HONORING OUR PAST TUSTI N HOUSING AUTHORITY FY 2010 - 2011 Established The Tustin Housing Authority was established on March 15, 2011 and the By-Laws were adopted on April 19, 2011. Annual Report In accordance with Section 34328 of California Housing Authorities Law (CHAL), the newly established Tustin Housing Authority is filing on the first day of October with the City Clerk and with the Department of Housing and Community Development (HCD) a complete report of its activities for the preceding year. This report contains information adequate for the city or HCD to determine that the requirements of Section 34312.3 have been met for any activity undertaken pursuant to that section. The report shall also make either directly or through any national, regional, or state housing association or organization of which it may be a member, recommendations with reference to additional legislation or other action which it deems necessary to carry out the purposes of CHAL. Pursuant to Section 34328.1 of CHAL, the annual report must contain the following: 1. Recommendations for needed legislation to carry on properly a program of housing and community development in this state. a. The Tustin Housing Authority does not have any recommendations for needed legislation at this time. 2. Data on terminations of tenancies of victims of domestic violence in housing authority units, and terminations of Section 8 vouchers of victims of domestic violence. a. The Tustin Housing Authority does not currently own or operate housing authority units or issue Section 8 vouchers. As a result, the authority does not have any data to report. 3. Pursuant to Section 34328, the Tustin Housing Authority's annual report shall contain information adequate for the city and HCD to determine that the requirements of Section 34312.3 have been met for any activity undertaken pursuant to that section. a. The Tustin Housing Authority did not issue revenue bonds, make or undertake commitments, or purchase or undertake commitments associated with multifamily rental housing. 4. Any activities where the authority developed, rehabilitated, or financed housing projects or participated in the development, rehabilitation, or financing of housing projects; or purchased, sold, leased, owned, operated, or managed housing projects so assisted, subject to all of the requirements of Section 34312.3. a. The Tustin Housing Authority does not have any activity to report. 5. A reporting breakdown of occupancy by income levels and rents for housing projects assisted by the authority that demonstrate compliance. a. The Tustin Housing Authority does not have any activity to report. 6. Any indebtedness incurred pursuant to a mortgage loan finance under the terms of Section 34312.3 that is subject to acceleration and the balance owing declared immediately due and payable upon any sale of an owner-occupied residence to a purchaser who does not meet the required qualifications for borrowers as established by the authority. a. The Tustin Housing Authority does not have any activity to report. 7. Certification that the authority shall require the owners of housing projects assisted pursuant to Section 34312.3 to accept as tenants, on the same basis as all other prospective tenants, in the units reserved for very low income households, any very low income households, any very low income households who are recipients of federal certificates for rent subsidies pursuant to the existing program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its successor. The authority shall not permit a selection criteria to be applied to Section 8 certificate holders that is any more burdensome than the criteria applied to all other prospective tenants. a. The Tustin Housing Authority does not have any activity to report. 8. A determination that no resident in housing units assisted pursuant to Section 34312.3 was denied continued occupancy or ownership because, after admission, the resident's family income increased to exceed the eligibility level. However, the authority shall ensure that percentage requirements of this section shall continue to be met by providing the next available unit or units to persons of low income or by taking other actions to satisfy the percentage requirements of this section. a. The Tustin Housing Authority does not have any activity to report. 9. A determination in whether the percentage requirements of subdivision (c) of Section 34312.3 have been achieved. a. The Tustin Housing Authority does not have any activity to report. 10. Units required to be reserved for occupancy by subdivision (c) and financed with the proceeds of bonds issued on or after January 1, 1986, shall remain occupied by, or made available to, those persons until the bonds are retired. a. The Tustin Housing Authority does not have any activity to report. 11. Determination that multifamily rental housing financed pursuant to Section 34312.3 is not subject to the requirements of subparagraph (B) of paragraph (1) and paragraph (2) of subdivision (c), and the requirements of subdivision (d), as a result of fulfilling all requirements. a. The Tustin Housing Authority does not have any activity to report. 12. It is the intent of the Legislature, and the Legislature declares, that housing authorities are the local entities with primary responsibility for providing housing for low-income and very low income households within their jurisdictions. However, recognizing that housing projects only for low-income households cannot be adequately assisted or developed with currently available funds, and that excess funds from housing projects assisted pursuant to this section can be utilized to further assist in the provision of housing for lower income households, it is the intent of the Legislature that the authorization of this section is to be used to enhance and supplement the traditional housing authority role of providing housing only for low-income households. a. The Tustin Housing Authority does not have any activity to report. 13. The authority shall provide the Department of Housing and Community Development funds as requested by the department to reimburse the department for the cost of processing the report required by this section. a. Considering the Tustin Housing Authority was established in FY 2010- 2011 and has nothing to report, the authority requests relief from HCD's requirement the authority reimburse the department.